Discussion Paper Details

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Title: New Economic Geography and the City

Author(s): Carl Gaigné and Jacques-François Thisse

Publication Date: April 2019

Keyword(s): cities, Communication costs, Commuting costs, Land rent, manufacturing goods, new economic geography, Services and transport costs

Programme Area(s): International Trade and Regional Economics

Abstract: In this chapter, we provide a bird-eye overview of recent developments in NEG within a unifying framework. We build on the idea that the difference in the economic performance of regions depend on the global and local interactions between and within regions through the locational decisions made by firms and households at the macro and microspatial levels. We also focus on settings that take into account the urban structure, the social and skill composition and the sectorial specialization of regional agglomerations, and the quality of urban life. Three types of spatial frictions are considered, that is, transport costs, commuting costs, and communication costs.

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Bibliographic Reference

Gaigné, C and Thisse, J. 2019. 'New Economic Geography and the City'. London, Centre for Economic Policy Research.